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Smaller cars in demand due to fuel price hike

SALES of private vehicles may drop due to higher fuel prices but the actual number may not be that significant. There is no doubt that fuel guzzlers will lose favour and may be replaced by those with better consumption.

Fuel efficiency will be the main focus of private car owners as they will be more conscious of their monthly petrol bill, which has gone up by nearly 30%.

Of course those who can afford it may not be too bothered and there will always be a demand for the more prestigious European models.

What is definite is that the pattern of car ownership will change as those in the middle income group will wish to save on their fuel expenses to meet uncertain times ahead.

The group that will suffer from the petrol hike are those using cars with engine capacity of 1600cc and above, whose consumption is considered high.

They will have difficulty in changing to smaller cars since they will not be able to get a good trade-in value. Unless they are prepared to accept a substantial loss, they will have to hang on to their vehicles longer.

Of course MPV owners will have the biggest headache as petrol consumption is usually quiet high. It will not be surprising that their value could have dropped by half in the past few months.

This is the present dilemma facing such vehicle owners and the only alternative is either to make fewer trips or to buy a smaller second car for daily use such as marketing and taking the children to school.

However, due to the rush to buy fuel-efficient models, it will be a challenge to the manufacturers or assemblers to meet orders.

Malaysia’s second national car, Perodua, should be able to continue as the top seller for some time to come.

They have few competitors and so long as they can maintain standards and quality, they should be kept busy for many years to come.

Proton is trying to play catch up but this is going do take some doing unless they can improve their act and produce models of better quality and fuel consumption.

In any case, those wishing to buy smaller models are likely to have a long wait since it will need time and resources to build up the facilities to increase production.

Perodua models such as the Myvi and Viva are the preferred choice of buyers not because they are merely price competitive but because they have a reputation of quality and reliability, too.

This is a combination that is hard to beat and the company fully deserves the public confidence and support. They have set a high benchmark for other manufacturers to follow.

It is hoped that in their rush to bring out more vehicles to meet public demand, their high standards will not be compromised.

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